Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, criticized the performance of companies operating in Nigeria’s upstream oil sector, attributing the underperformance of the oil and gas industry to their actions. Despite contributing over 90 percent of Nigeria’s foreign exchange earnings, the petroleum sector contributes less than five percent to the country’s GDP, according to the National Bureau of Statistics.

During the Nigeria Energy International Summit (NEIS) in Abuja, Senator Lokpobiri highlighted that the lackluster performance of upstream companies has caused local refineries to struggle due to insufficient crude oil feedstock. He emphasized the need for investment in upstream oil production to improve the industry as a whole. He argued that an underperforming upstream sector negatively impacts both the midstream and downstream sectors, and only through increased production can Nigeria meet both its domestic and international crude oil commitments.

He also discussed the challenges around domestic crude oil supply obligations, as outlined in the Petroleum Industry Act (PIA), and called for greater collaboration among stakeholders to address these issues. He stressed that boosting upstream production would not only benefit the sector but also help generate revenue to finance critical sectors of the economy.

Engr. Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), provided an update on production figures, noting that while upstream companies currently produce 1.75 million barrels per day, they have the capacity to produce 2.24 million barrels per day. He also highlighted NUPRC’s efforts to bridge this gap through initiatives like reactivating shut-in wells and pursuing strategies for exploration and development. These efforts are aimed at achieving a target of an additional 1 million barrels per day in production.